Hurst City audit wins 50th consecutive GFOA award; auditors report clean opinion
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Summary
Auditors told Hurst City Council the fiscal 2024 financial statements will receive a clean, unmodified opinion and reported no material weaknesses; the city also received the Government Finance Officers Association certificate for 50 consecutive years of excellence in financial reporting.
Hurst City auditors presented the fiscal year 2024 audit to the Hurst City Council and said they will issue a clean, unmodified opinion on the city's financial statements, with no material weaknesses or significant deficiencies identified.
The auditor from Mazars, Rachel Irmsby, partner and market industry leader, told the council the draft audit is final and the firm stands ready to finalize the report with a clean opinion by the end of the week. She said the audit tests management estimates including accounts receivable allowance, pension and OPEB liabilities, leases and subscription liabilities, and found management's estimates to be complete and reasonable.
The presentation also noted Hurst City exceeded its internal policy to maintain an unassigned general fund balance equivalent to 90 days of operating expenditures (about 25% of operating expenses), which the auditor said outpaces GFOA's industry recommendation of 60 days (about 17%). The audit noted the city's participation in TMRS (Texas Municipal Retirement System) and reported the city's pension plan was about 86% funded as of Dec. 31, 2023; the standalone retiree health-care (OPEB) plan was roughly 30% funded at that same measurement date.
Mayor and council members and city staff were thanked by the auditor and by finance staff for months of preparation that made a timely audit possible. Clayton, who introduced the award presentation, noted the city received the Government Finance Officers Association certificate of achievement in financial reporting for fiscal year 2022–23 and that this marks the 50th consecutive year Hurst City has received the award.
Why it matters: A clean opinion and no audit findings indicate the city's financial statements are presented in conformity with applicable accounting standards and that internal controls over financial reporting were operating effectively for the fiscal year audited. The long run of GFOA awards is a signal to taxpayers and bond markets of consistent financial reporting practices.
The council did not take separate formal action on the audit during the presentation beyond accepting the report; auditors and staff remained available for follow-up questions.
